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NEW YORK ( TheStreet) -- Have the markets lost their minds or did Friday's miserable unemployment number just not matter? That's the issue Jim Cramer pondered. He told his "Mad Money" viewers that while it might seem unfathomable the markets could rally on a day with so much bad news, in reality the markets' reaction makes perfect sense. Cramer said that first, with the economy still stalled, the markets are once again hoping for an early Christmas present from the Federal Reserve next week. If things get bad enough, the Fed will surely have to act. At least, that's the thinking on Wall Street. Second, Cramer reminded viewers the U.S. is no longer at the center of the economic universe -- Europe is, and hope still springs eternal the continent is about to do the right thing. Third, Cramer said the Chinese pulled the trigger on some big stimulus projects, which is great news for companies United Technologies ( UTX), Caterpillar ( CAT) and Freeport McMoRan ( FCX). Fourth, the woes at Intel ( INTC) prove weakness in PCs, not weakness in technology overall, which is why Apple ( AAPL), a stock he owns for his charitable trust,
Next Week's Game PlanAll eyes will be on the Federal Reserve next week, Cramer told viewers as he laid out his "Game Plan" for next week's trading. Cramer said the Fed's meeting on Wednesday and Thursday will be key for the direction of the markets. But beyond the Fed, Cramer said the week begins with Chinese economic data on Sunday. If these results are disappointing and with no interest-rate cuts, the sellers will be out on Monday and investors can look for their Friday gains to disappear.
On Monday, Cramer said he'll be watching two great recent initial public offerings, Palo Alto Networks ( PANW), a cyber security play, and Five Below ( FIVE), a discount retailer. Shares of Palo Alto are up 33% from their after market IPO price, while shares of Five Below are up 30%. Cramer said both companies remain strong buys. Tuesday brings United Natural Foods ( UNFI), earnings that should reignite interest in Whole Foods ( WFM) and Hain Celestial ( HAIN). Cramer advised using any weakness on Monday to pick up shares in these names. Then on Wednesday, it's Apple's turn to take center stage with an expected iPhone announcement. Cramer said if the new device has a "wow factor," shares of Apple will continue to soar. But if the product is only slightly cooler, then look for shares to dive. For Thursday, Cramer said he'll be watching Pier 1 Imports ( PIR), a company he's confident can deliver on its numbers. In non-stock news, Cramer said he'll also be keeping eyes on the U.S. Department of Agriculture crop report on Wednesday, a report that should bolster seed makers Monsanto ( MON) and DuPont ( DD). He also awaits the German court ruling on whether that country can participate in the European bail out. Then on Thursday, it's the G-20 Summit, along with the Fed, that will have investors glued to their seats.
Bulls vs. Bears"Normally, I stay away from battleground stocks," Cramer told viewers, but sometimes you have to take sides. He was talking about Questcor Pharmaceuticals ( QCOR), a stock that's had a remarkable seven-year run from just 50 cents a share to $52 a share. Cramer explained that unlike many smaller drug makers, Questcor is not playing "FDA roulette," hoping for approval on a host of new drugs. Instead, the company has just one drug, Acthar gel, which it is now marketed for 19 different ailments, with more on the way. At issue is the battle between the bulls and the bears, said Cramer. The turbulence started in July, when several Web sites began reporting rumors that generic competition for Acthar was on the way. That sent shares spiraling, something that benefited the 44% of the company's shares that were sold short at the time.
But Cramer said he's not buying those rumors since bringing a new drug to market involves a ton of paperwork that takes at least six to 12 months to complete. So far, no paperwork for a would-be Acthar competitor has surfaced. He said that Novartis ( NVS) does sell a similar drug in Europe, but the economics don't work for the company to bring the drug to the U.S. since Questcor's 19 indications would involve 19 clinical trials to be performed before that drug would be on the same playing field as Acthar. Cramer said these rumors of "questionable" origin are at odds with the Questcor, which just received orphan drug status for Acthar, giving it even more incentives for making the drug. The company also just reported terrific prescription data, which shows how much doctors love the drug. So in the battle that has become Questcor, Cramer said he's siding with the bulls as this stock is not yet done going higher.
Lightning RoundHere's what Cramer had to say about callers' stocks during the "Lightning Round": Nvidia ( NVDA): "People are worried about the quarter. I say don't buy." Baidu.com ( BIDU): "I am not recommending any Chinese stocks right now." WW Grainger ( GWW): "Any weakness, I want to buy this one. It's a terrific company." Nordic American Tanker ( NAT): "The daily tanker rates are horrendous. I think you need to sit on the sidelines for now." Bank of America ( BAC): "Bank of America is good to go. I think you can own it. " Consolidated Edison ( ED): "I do like their dividend. I'd use $58 as my entry point."
Executive DecisionIn the "Executive Decision" segment, Cramer sat down with David Pyott, chairman, president and CEO of Allergan ( AGN), which remains the fastest-growing medical company out there as it continues to find new uses for older products. Pyott said the consumer is "alive and well," something that has helped Allergan continue to grow at a rate of 9.5% a year when adjusting for currencies. He also noted that the second half of 2012 is poised to be even better than the first, thanks to a competitor for Botox being taken off the market.
"We'll be once again taking share," said Pyott, something that will help Botox continue to grow in the double digits. Among some of the new indications for the company is the use of Botox for migraines. Pyott said the migraine business is picking up steam and the company has trained over 6,000 doctors in its use so far. He said Allergan is running both branded and non-branded advertising in the migraine space, both of which are working well to find patients in need. Even newer to the company's stable of products are those for overactive bladder. Pyott said right now Allergan's treatments are approved for use with patients who have incontinence as a result of a spinal cord injury. In 2013 the company hopes to receive approval for severe incontinence, a far bigger indication than spinal injuries. Pyott also discounted a slowdown in the company's eye-care business, calling the anomaly a "blip" related primarily to inventory. Cramer continued his recommendation of Allergan.